Purpose: The purpose of this article is to provide a design and implementation framework for ALAR (action learning action research) programme which aims to address collaborative improvement in the extended manufacturing enterprise. Design/methodology/approach: This article demonstrates the design of a programme in which action learning and action research were used in combination (ALAR). The participants in the EME engaged in action learning on their work on collaborative improvement in the supply chain. The action learning was studied through action research cycles of action and reflection. Findings: This implementation of the ALAR programme consolidated the design of ten meetings across three stages and adds to other design models within ALAR approach. Research limitations/implications: This is one particular research programme, from which learning may be extrapolated. Practical implications: This article provides a practical design framework for ALAR programmes on collaborative improvement in the EME. Originality/value: The article extends the application of an ALAR programme design into the inter-organisational setting.